In this wiki I will be exploring the thoughts of zero hour contracts. I will start the wiki by introducing zero hour contracts and describing the advantages and disadvantages to both employees and employers. I will be providing relevant information as well as real life case studies to back up whether it is (A) new, (B) a trend or (C) management in regards to business and management.
Zero hour contracts
Zero hour contracts also known as casual contracts, are usually for ‘piece work’ or ‘on call’ work, it is understood be an agreement between an employer and employee where:
Ø The employer is not obliged to provide minimum working hours. Ø The employee is not obliged to accept any work offered. Ø Employees are on call for work from the employer.
In May 2015, new regulations about zero hour contracts were enforced. The law prevents employers from enforcing 'exclusivity clauses' in zero hour contracts. An exclusivity clause is where an employer restricts employees from working for other employers.
The Exclusivity Terms in Zero Hours Regulations 2015 states:
Ø It will be automatically unfair if someone is dismissed if they have breached a contractual clause stopping them from working for another employer. Ø It is unlawful for a worker to suffer a detriment because they work for another employer. Ø There is no qualifying period to bring an unfair dismissal claim for this reason, and any claim made to a tribunal will depend on the tribunal finding an exclusivity clause in the employment contract. (Zero Hours Contracts | Acas Advice And Guidance | Acas)
Defining the criteria
New: Something that is recently created or having started to exist recently. (Cambridge dictionary)
Trend:A generaldevelopment or change in a situation or in the way that people are behaving(Cambridge dictionary). A trend simply reflects what seems to be going around at any given time. A trend can be in any area and doesn't only reflect fashion, pop culture and entertainment. There can also be a trend in the stock market to be bullish or bearish, depending on economic indicators, or a political trend reflecting a nation’s current mood. There will always be a new trend coming along to replace the old. (Vocabulary.com) Management: The act of managing something. Management can be the people in charge of running a business, who have employees who report to them. Good management is a combination of people skills, shrewd business plans, and probably a little luck, too. Outside of business, management can describe anything you direct, like the management of your health by eating right, exercising, seeing your doctor regularly, and getting enough sleep. (Vocabulary.com)
Zero hour contracts VS Casual contracts
Casual work contracts can often be confused with zero hour contracts. However there are some fundamental differences between the two. Typically a casual worker contract is applicable to those who are classed as being a ‘worker’ rather than an ‘employee’. This is because workers have less employment rights than an employee. A casual contract is mainly used for seasonal workers who only work inconsiderable amount of times in the year, the contract is normally not known as a permanent employment contract. However a zero hour contracts is a type of contract that allows an employee to work but with no guaranteed hours provided. The employer can simply call upon the services of its employees whenever required, although the employer is not required to provide work to the employee, the employee is usually obliged to be available and accept work when it is offered. Similar to zero hour contracts, employers are not obliged to offer work to casual workers, however casual workers are not required to accept offered work, they do however risk not being qualified for statutory payments such as sick pay unlike those on a zero hour contract. The reason behind this is because often that mutuality of accountability does not arise and consequently the individual is not provided with the status of an employee. (Employment Contracts - Different Types Of Employment Contract) (What Is The Status Of Workers Engaged On Casual Or Zero Hours Contracts, Xperthr)
Advantages
The fairness of zero hour contracts has gained negativity as it does not offer assurance of hours and some would argue that employees can be left suffering from financial issues and anxiety. However, zero hour contracts can be seen as a good option for individuals of a variety of ages, people are not tied down to work so therefore they have the benefit of being flexible and the option to work a shift or reject it. This works well for those that have other commitments, for example college or university students, zero hour contracts allow them to work around lessons and arrange to work depending on there availability. Zero hour contracts are also great for employers, typically those who own a business and have daily unpredictable outcomes. An example would be if a restaurant couldn’t predict how busy it’s going to be on a Wednesday evening, but by chance they need more waiters, they’re able to contact employees who are willing to work at short notice. Finally, there are additional benefits within the hospitality sector, for example owners are able to hire staff as and when needed. If a hotel is notably busy in the summer season, additional employees who work flexible hours may be needed. However during the less busy months when the hotel isn’t busy with guests, they can get by with the regular permanent employees.
(capify, advantages-disadvantages zero hour contracts)
Disadvantages
As mentioned previously, one of the main criticisms of zero hour contracts is that it doesn’t provide any financial stability to employees. Individuals are not guaranteed work, which is a tricky situation to be in, especially for those who have children or are care for others. Without the stability of guaranteed work they’re unable to plan for the future or budget accurately. However some would prefer this option, parents. Traditionally, the man of the house would have a steady and guaranteed income so if his wife were on a zero hour contract, she is then able to chose shifts that are most convenient, as oppose to struggling to juggle home and work commitments. Although the main negatives surrounding zero hour contracts seem to be based on employees rather than business owners, people are gradually opting into the contract- primarily those who may be a university student, and can’t commit too much time to employment or someone who has young children and would like to be in control of when they work. Despite the financial uncertainty, zero hour contracts do benefit those who are most suitable for it. (capify, advantages-disadvantages zero hour contracts)
Case Study: Sports Direct
Source: Yixin Song’s Blog, Zero hour contract, 2015.
||
In 2014 it was revealed that Sports Direct were facing legal action from 250 employees whom were excluded from a multimillion pound bonus scheme as there were employed on a zero hour contract. Pay Justice lawyers are preparing to file multiple claims for breach of contract at the high court, the employees were excluded from the bonus scheme which paid out about £160 million worth of shares to it’s 2000 permanent employees in 2013. (The Guardian, 2014)
Sports Direct has also been widely criticized for employing almost 90% of its staff on zero hour contracts, this does not guarantee a minimum number of working hours per week and also fail to provide for sick pay and annual leave.
Whilst Sports Direct face legal action in relation to its use of controversial contracts, an employment tribunal heard claims from a former employee.
(The Guardian, 2016)
Zahera Gabriel-Abraham left her job at the Croydon branch in July 2012 after suffering panic attacks, that she blames are due to lack of financial security as her employment contract offer no guaranteed work or income. More than 5,000 members of a campaign group called 38 Degrees financially supported the claim, they argue that part –time staff are mainly women whom are on zero hour contracts are treated unfavorably to full time staff. Lawyers will be arguing that Sports Direct has discriminated against women, whom are most likely to be those working part time. (The Guardian, 2016)
The Guardian exposed how temporary workers, typically agency staff at the Sports Direct depot in Shirebrook, Derbyshire were ultimately receiving hourly rates of pay that fall below the national minimum wage. Sports Direct have since increased the rate of pay and adjusted working practices to allow employees are paid at least the minimum. However they have not offered to extend guaranteed hours of work for more than 4,000 of its agency workers whom work in the depot where working conditions are described as a Victorian workhouse. A report found that employees were penalized for taking breaks or sickness and there were breaches of health and safety. The Best Connection and Transline whom are the employment agencies used by Sports Direct to employ staff have been criticized for paying employees a low wage without any justification.
(The Guardian, 2014)
Case study: McDonald’s
A column from The Independent found that McDonalds’s has admitted 90% of its UK staff are on zero hour contracts since 1974, whilst being accountable for employing 92,000 people in the UK. This revelation suggest the fast food giant could potentially be the largest zero hour contract employer in the UK’s private sector with 82,800 contracted staff not guaranteed stable work or income. Speaking to The Guardian newspaper, Labour MP Andy Sawford said: “McDonald's could lead on addressing this issue… There will be some employees working 20 to 30 hours a week, week in week out and it is indefensible not to put those people on contracts”. Politicians have responded to McDonalds’s revelation by suggesting they offer a new contract with guaranteed hours of work.
A spokeswoman for McDonald’s said: “We never ask people to be 'on call'... Many of our employees are parents or students who are looking to fit flexible, paid work around childcare, study and other commitments.” She added: “The zero-hours contracts which all our hourly-paid employees are on do not affect employee benefit entitlement and all of our employees are entitled to a range of benefits including life assurance, employee discounts and access to a range of training and qualifications.”(The Independent, 2013)
McDonald’s do openly share there views on zero hour contracts, there website has a ‘what makes McDonald’s?’ page which is typically a question and answer page. There are questions asked about the approach McDonald’s take to tackle zero hour contracts and responses. One reply states ‘Three-quarters of our employees say that flexibility is one of the main things that they value about their job at McDonald's, and these contracts support the flexibility we offer them. Many of our employees are parents or students who are looking to fit flexible, paid work around childcare, study and other commitments; often adapting their work patterns between term time and holidays.’ (What Makes McDonald’s, 2015) The honesty McDonald’s provide to the public as well as employees could be the reason why three quarters of employees are on a zero hour contracts. McDonald’s sit proudly being known as a flexible employer, for the majority of its employee’s flexibility is one of the main benefits that are valued.
During September 2015 a staff survey took place at McDonald’s for employees to voice their concerns, the survey found staff were unable to get loans, mortgages or even mobile phone contracts due to being on a zero hour contract which did not guarantee employment every week. McDonald’s has since then decided to revamp the employment policy and is now offering UK employees working on zero hour contracts to move onto fixed hours. The new contract will guarantee employees to a minimum of 4, 16 or 30 hours a week.
A trial had been conducted at the McDonald’s restaurant in Merseyside with a total of 246 employees, of which 60% had opted to work a maximum of 30 hours a week. The change will have benefitted those the most that want to have access to car loans, mobile phone contracts and mortgages. The move has also been greatly appreciated by both the trade unions and the Institute of Directors.
(International Business Times UK, 2016)
Facts and Figures
Percentage of those in employment on a zero hour contract
As you can see from the table above, the percentage of those employed on a zero hour contract has increased from 2000 at 0.8% to 2.4% in 2015 by 1.6%. The growth has not been consistent as throughout the 15 years the percentage has been decreasing and increasing, however it rapidly increased in 2013 and carried on steadily increasing (ONS, Labour force survey). It is notable that in 2013 the GOV department for business innovation & skills published a consultation report on zero hour contracts stating that they will be seeking to maximise the opportunities of zero hours contracts while minimising abuse and setting core standards that protect individuals. The consultation document sets out the identified issues, seeks further evidence and invites views on a range of potential actions Government and employers can take. (GOV, Zero Hours Employment Consultation) This could suggest why the growth of those employed on zero hour contracts had increased.
Demographics
The young immensely hold zero hour contracts, with 36% of zero hour contract holders under 25. However, this does not imply that most young people are on such contracts, they account for only 8% of total employment among those between the ages of 16 and 24 and the figures includes a compelling number of students in full-time education. Zero hour contracts are heavily concentrated in lower pay occupations with nearly 60% classified as unskilled or in caring, leisure, and other service occupations. They are also densely practiced within hospitality as well as health and social work sectors, where they account for 24% and 21% of employment respectively. Although Sports Direct has been in the headlines, zero hour contracts are a rarity in wholesale and retailing, making up a little over 2% of all jobs. (CIPD Community)
Job roles of those on zero hour contracts.
Source: CIPD, Research report, 2013.
As you can see from the graph above, a notable proportion of employers using zero hour contracts are using them to resource lower skilled roles, such as cleaners (22%). A similar number of employers employ care/social workers (19%), administrative workers (16%), and call centre/ customer service roles (14%). This is found to be rationale as research suggests more than one in five people employed under a zero hour contract happen to be in elementary occupations. The graph also shows 12% of employers use zero hour contracts to employ teachers/tutors and nurses; this corresponds to the Work Foundation report which shows one in ten zero hour contract workers are professionals (11%). (Brinkley 2013) (CIPD, Research report, 2013)
Characteristics of those employed on zero hour contracts
A survey conducted by The Labour Force provides information about the type of people who report that their main employment is on a zero hour contract, those being:
Source: Zero-Hours Contracts, House Of Commons, briefing paper 2016
55% of people on a zero-hours contract were women in April-June 2016. These 499,000 women represented 3.4% of all women in employment in that quarter.
20% of people on a zero-hours contract were in full-time education compared with 2% of other people in employment.
65% of people reporting that they were on a zero-hours contract were working part-time. In contrast, 26% of all people working part-time were on a zero-hours contract.
People on a zero-hours contract were also more likely to be at the youngest end of the age range. 36% of all people reporting to be on a zero-hours contract in April to June 2016 were aged 16-24, compared with 5% of those aged 65 and over.
Zero hour contracts made up a bigger share of the young workforce: 8% of all 16-24 year-olds in employment were working on these contracts in April-June 2016 as opposed to less than 2% of 35-49 year-olds. (Zero-Hours Contracts, briefing paper, 2016)
Conclusion
To conclude my research of zero hour contracts and analysis of whether it is (A) new, (B) a trend or (C) management, I would suggest that zero hour contracts are not new, not a trend but definitely management. My findings, case studies and graphs show that employers use zero hour contracts in a form of management, whether it is managing the trade of a business and managing the number of staff a business needs at different times of the year or an employee who has other commitments and only wants to work when it is suitable for them- commonly those under 25. This is also showing management, as it is the individual’s choice to mange working hours with other commitments. Zero hour contracts are only introduced to a business that can manage and provide a job role where an employee can be employed with the understandings of the requirements of the contract. Overalls there are many benefits and negatives around zero hour contracts, which is why it the rights and policies of the contract are often reviews and changed, for the better of the employee.
References Brinkley, I. "WF REPORTS | Work Foundation". Work Foundation. 2013. Web. 7 Feb. 2017.
Butler, Sarah. Sports Direct Faces Action From Zero-Hours Staff Over Bonus Scheme. the Guardian. 2014. Web. 7 Feb. 2017.
Capify, Admin. The Benefits Of Zero Hour Contracts. Capify UK. 2017. Web. 3 Feb. 2017.
CIPD Community, New Statistics On Zero-Hours Contracts. 2016. Web. 7 Feb. 2017.
CIPD, Research Report, Zero-Hours Contracts Myth And Reality. 2013. Web. 7 Feb. 2017.
Dictionary, new. New Meaning In The Cambridge English Dictionary. Dictionary.cambridge.org. 2017. Web. 5 Feb. 2017.
Employment Contracts - Different Types Of Employment Contract. Employment Law Contract. 2017. Web. 9 Feb. 2017.
Farrell, Sean and Sarah Butler. Sports Direct Ditches Zero-Hours Jobs And Ups Worker Representation. the Guardian. 2016. Web. 7 Feb. 2017.
GOV, Zero Hours Employment Consultation. Department for business innovation & skills, 2013. Web. 6 Feb. 2017.
Grandhi, Kedar. Mcdonald's Offers UK Staff On Zero-Hours Contract The Option To Move To Fixed Hours. International Business Times UK. 2016. Web. 7 Feb. 2017.
Hall, John. They Won't Be Lovin' It: Mcdonald's Admits 90% Of Employees Are On. The Independent. 2013. Web. 7 Feb. 2017.
Palmer, Nick. Supplementary LFS Data On Zero Hours Contracts- Office For National Statistics. Ons.gov.uk. 2015. Web. 6 Feb. 2017.
Pyper, Doug and Jeanne Delebarre. Zero-Hours Contracts. House Of Commons, 2016. Web. 8 Feb. 2017. Briefing Paper.
Assignment 1- 0 hour contracts
Student ID: 284258
Momota Begum
Word count: 2856
Introduction
In this wiki I will be exploring the thoughts of zero hour contracts. I will start the wiki by introducing zero hour contracts and describing the advantages and disadvantages to both employees and employers. I will be providing relevant information as well as real life case studies to back up whether it is (A) new, (B) a trend or (C) management in regards to business and management.
Zero hour contracts
Zero hour contracts also known as casual contracts, are usually for ‘piece work’ or ‘on call’ work, it is understood be an agreement between an employer and employee where:
Ø The employer is not obliged to provide minimum working hours.
Ø The employee is not obliged to accept any work offered.
Ø Employees are on call for work from the employer.
In May 2015, new regulations about zero hour contracts were enforced. The law prevents employers from enforcing 'exclusivity clauses' in zero hour contracts. An exclusivity clause is where an employer restricts employees from working for other employers.
The Exclusivity Terms in Zero Hours Regulations 2015 states:
Ø It will be automatically unfair if someone is dismissed if they have breached a contractual clause stopping them from working for another employer.
Ø It is unlawful for a worker to suffer a detriment because they work for another employer.
Ø There is no qualifying period to bring an unfair dismissal claim for this reason, and any claim made to a tribunal will depend on the tribunal finding an exclusivity clause in the employment contract.
(Zero Hours Contracts | Acas Advice And Guidance | Acas)
Defining the criteria
New: Something that is recently created or having started to exist recently. (Cambridge dictionary)
Trend: A generaldevelopment or change in a situation or in the way that people are behaving(Cambridge dictionary). A trend simply reflects what seems to be going around at any given time. A trend can be in any area and doesn't only reflect fashion, pop culture and entertainment. There can also be a trend in the stock market to be bullish or bearish, depending on economic indicators, or a political trend reflecting a nation’s current mood. There will always be a new trend coming along to replace the old. (Vocabulary.com)
Management: The act of managing something. Management can be the people in charge of running a business, who have employees who report to them. Good management is a combination of people skills, shrewd business plans, and probably a little luck, too. Outside of business, management can describe anything you direct, like the management of your health by eating right, exercising, seeing your doctor regularly, and getting enough sleep. (Vocabulary.com)
Zero hour contracts VS Casual contracts
Casual work contracts can often be confused with zero hour contracts. However there are some fundamental differences between the two. Typically a casual worker contract is applicable to those who are classed as being a ‘worker’ rather than an ‘employee’. This is because workers have less employment rights than an employee. A casual contract is mainly used for seasonal workers who only work inconsiderable amount of times in the year, the contract is normally not known as a permanent employment contract. However a zero hour contracts is a type of contract that allows an employee to work but with no guaranteed hours provided. The employer can simply call upon the services of its employees whenever required, although the employer is not required to provide work to the employee, the employee is usually obliged to be available and accept work when it is offered. Similar to zero hour contracts, employers are not obliged to offer work to casual workers, however casual workers are not required to accept offered work, they do however risk not being qualified for statutory payments such as sick pay unlike those on a zero hour contract. The reason behind this is because often that mutuality of accountability does not arise and consequently the individual is not provided with the status of an employee. (Employment Contracts - Different Types Of Employment Contract) (What Is The Status Of Workers Engaged On Casual Or Zero Hours Contracts, Xperthr)
Advantages
The fairness of zero hour contracts has gained negativity as it does not offer assurance of hours and some would argue that employees can be left suffering from financial issues and anxiety. However, zero hour contracts can be seen as a good option for individuals of a variety of ages, people are not tied down to work so therefore they have the benefit of being flexible and the option to work a shift or reject it. This works well for those that have other commitments, for example college or university students, zero hour contracts allow them to work around lessons and arrange to work depending on there availability. Zero hour contracts are also great for employers, typically those who own a business and have daily unpredictable outcomes. An example would be if a restaurant couldn’t predict how busy it’s going to be on a Wednesday evening, but by chance they need more waiters, they’re able to contact employees who are willing to work at short notice. Finally, there are additional benefits within the hospitality sector, for example owners are able to hire staff as and when needed. If a hotel is notably busy in the summer season, additional employees who work flexible hours may be needed. However during the less busy months when the hotel isn’t busy with guests, they can get by with the regular permanent employees.
(capify, advantages-disadvantages zero hour contracts)
Disadvantages
As mentioned previously, one of the main criticisms of zero hour contracts is that it doesn’t provide any financial stability to employees. Individuals are not guaranteed work, which is a tricky situation to be in, especially for those who have children or are care for others. Without the stability of guaranteed work they’re unable to plan for the future or budget accurately. However some would prefer this option, parents. Traditionally, the man of the house would have a steady and guaranteed income so if his wife were on a zero hour contract, she is then able to chose shifts that are most convenient, as oppose to struggling to juggle home and work commitments. Although the main negatives surrounding zero hour contracts seem to be based on employees rather than business owners, people are gradually opting into the contract- primarily those who may be a university student, and can’t commit too much time to employment or someone who has young children and would like to be in control of when they work. Despite the financial uncertainty, zero hour contracts do benefit those who are most suitable for it. (capify, advantages-disadvantages zero hour contracts)
Case Study: Sports Direct
||
In 2014 it was revealed that Sports Direct were facing legal action from 250 employees whom were excluded from a multimillion pound bonus scheme as there were employed on a zero hour contract. Pay Justice lawyers are preparing to file multiple claims for breach of contract at the high court, the employees were excluded from the bonus scheme which paid out about £160 million worth of shares to it’s 2000 permanent employees in 2013. (The Guardian, 2014)
Sports Direct has also been widely criticized for employing almost 90% of its staff on zero hour contracts, this does not guarantee a minimum number of working hours per week and also fail to provide for sick pay and annual leave.
Whilst Sports Direct face legal action in relation to its use of controversial contracts, an employment tribunal heard claims from a former employee.
(The Guardian, 2016)
Zahera Gabriel-Abraham left her job at the Croydon branch in July 2012 after suffering panic attacks, that she blames are due to lack of financial security as her employment contract offer no guaranteed work or income. More than 5,000 members of a campaign group called 38 Degrees financially supported the claim, they argue that part –time staff are mainly women whom are on zero hour contracts are treated unfavorably to full time staff. Lawyers will be arguing that Sports Direct has discriminated against women, whom are most likely to be those working part time. (The Guardian, 2016)
The Guardian exposed how temporary workers, typically agency staff at the Sports Direct depot in Shirebrook, Derbyshire were ultimately receiving hourly rates of pay that fall below the national minimum wage. Sports Direct have since increased the rate of pay and adjusted working practices to allow employees are paid at least the minimum. However they have not offered to extend guaranteed hours of work for more than 4,000 of its agency workers whom work in the depot where working conditions are described as a Victorian workhouse. A report found that employees were penalized for taking breaks or sickness and there were breaches of health and safety. The Best Connection and Transline whom are the employment agencies used by Sports Direct to employ staff have been criticized for paying employees a low wage without any justification.
(The Guardian, 2014)
Case study: McDonald’s
A column from The Independent found that McDonalds’s has admitted 90% of its UK staff are on zero hour contracts since 1974, whilst being accountable for employing 92,000 people in the UK. This revelation suggest the fast food giant could potentially be the largest zero hour contract employer in the UK’s private sector with 82,800 contracted staff not guaranteed stable work or income.
Speaking to The Guardian newspaper, Labour MP Andy Sawford said: “McDonald's could lead on addressing this issue… There will be some employees working 20 to 30 hours a week, week in week out and it is indefensible not to put those people on contracts”. Politicians have responded to McDonalds’s revelation by suggesting they offer a new contract with guaranteed hours of work.
A spokeswoman for McDonald’s said: “We never ask people to be 'on call'... Many of our employees are parents or students who are looking to fit flexible, paid work around childcare, study and other commitments.” She added: “The zero-hours contracts which all our hourly-paid employees are on do not affect employee benefit entitlement and all of our employees are entitled to a range of benefits including life assurance, employee discounts and access to a range of training and qualifications.”(The Independent, 2013)
McDonald’s do openly share there views on zero hour contracts, there website has a ‘what makes McDonald’s?’ page which is typically a question and answer page. There are questions asked about the approach McDonald’s take to tackle zero hour contracts and responses. One reply states ‘Three-quarters of our employees say that flexibility is one of the main things that they value about their job at McDonald's, and these contracts support the flexibility we offer them. Many of our employees are parents or students who are looking to fit flexible, paid work around childcare, study and other commitments; often adapting their work patterns between term time and holidays.’ (What Makes McDonald’s, 2015)
The honesty McDonald’s provide to the public as well as employees could be the reason why three quarters of employees are on a zero hour contracts. McDonald’s sit proudly being known as a flexible employer, for the majority of its employee’s flexibility is one of the main benefits that are valued.
During September 2015 a staff survey took place at McDonald’s for employees to voice their concerns, the survey found staff were unable to get loans, mortgages or even mobile phone contracts due to being on a zero hour contract which did not guarantee employment every week. McDonald’s has since then decided to revamp the employment policy and is now offering UK employees working on zero hour contracts to move onto fixed hours. The new contract will guarantee employees to a minimum of 4, 16 or 30 hours a week.
A trial had been conducted at the McDonald’s restaurant in Merseyside with a total of 246 employees, of which 60% had opted to work a maximum of 30 hours a week. The change will have benefitted those the most that want to have access to car loans, mobile phone contracts and mortgages. The move has also been greatly appreciated by both the trade unions and the Institute of Directors.
(International Business Times UK, 2016)
Facts and Figures
Percentage of those in employment on a zero hour contract
As you can see from the table above, the percentage of those employed on a zero hour contract has increased from 2000 at 0.8% to 2.4% in 2015 by 1.6%. The growth has not been consistent as throughout the 15 years the percentage has been decreasing and increasing, however it rapidly increased in 2013 and carried on steadily increasing (ONS, Labour force survey). It is notable that in 2013 the GOV department for business innovation & skills published a consultation report on zero hour contracts stating that they will be seeking to maximise the opportunities of zero hours contracts while minimising abuse and setting core standards that protect individuals. The consultation document sets out the identified issues, seeks further evidence and invites views on a range of potential actions Government and employers can take. (GOV, Zero Hours Employment Consultation) This could suggest why the growth of those employed on zero hour contracts had increased.
Demographics
The young immensely hold zero hour contracts, with 36% of zero hour contract holders under 25. However, this does not imply that most young people are on such contracts, they account for only 8% of total employment among those between the ages of 16 and 24 and the figures includes a compelling number of students in full-time education. Zero hour contracts are heavily concentrated in lower pay occupations with nearly 60% classified as unskilled or in caring, leisure, and other service occupations. They are also densely practiced within hospitality as well as health and social work sectors, where they account for 24% and 21% of employment respectively. Although Sports Direct has been in the headlines, zero hour contracts are a rarity in wholesale and retailing, making up a little over 2% of all jobs. (CIPD Community)
Job roles of those on zero hour contracts.
Source: CIPD, Research report, 2013.
As you can see from the graph above, a notable proportion of employers using zero hour contracts are using them to resource lower skilled roles, such as cleaners (22%). A similar number of employers employ care/social workers (19%), administrative workers (16%), and call centre/ customer service roles (14%). This is found to be rationale as research suggests more than one in five people employed under a zero hour contract happen to be in elementary occupations. The graph also shows 12% of employers use zero hour contracts to employ teachers/tutors and nurses; this corresponds to the Work Foundation report which shows one in ten zero hour contract workers are professionals (11%). (Brinkley 2013) (CIPD, Research report, 2013)
Characteristics of those employed on zero hour contracts
A survey conducted by The Labour Force provides information about the type of people who report that their main employment is on a zero hour contract, those being:
Source: Zero-Hours Contracts, House Of Commons, briefing paper 2016
Conclusion
To conclude my research of zero hour contracts and analysis of whether it is (A) new, (B) a trend or (C) management, I would suggest that zero hour contracts are not new, not a trend but definitely management. My findings, case studies and graphs show that employers use zero hour contracts in a form of management, whether it is managing the trade of a business and managing the number of staff a business needs at different times of the year or an employee who has other commitments and only wants to work when it is suitable for them- commonly those under 25. This is also showing management, as it is the individual’s choice to mange working hours with other commitments. Zero hour contracts are only introduced to a business that can manage and provide a job role where an employee can be employed with the understandings of the requirements of the contract. Overalls there are many benefits and negatives around zero hour contracts, which is why it the rights and policies of the contract are often reviews and changed, for the better of the employee.
References
Brinkley, I. "WF REPORTS | Work Foundation". Work Foundation. 2013. Web. 7 Feb. 2017.
Butler, Sarah. Sports Direct Faces Action From Zero-Hours Staff Over Bonus Scheme. the Guardian. 2014. Web. 7 Feb. 2017.
Capify, Admin. The Benefits Of Zero Hour Contracts. Capify UK. 2017. Web. 3 Feb. 2017.
CIPD Community, New Statistics On Zero-Hours Contracts. 2016. Web. 7 Feb. 2017.
CIPD, Research Report, Zero-Hours Contracts Myth And Reality. 2013. Web. 7 Feb. 2017.
Dictionary Definition. Vocabulary.com. 2017. Web. 5 Feb. 2017.
Dictionary, new. New Meaning In The Cambridge English Dictionary. Dictionary.cambridge.org. 2017. Web. 5 Feb. 2017.
Employment Contracts - Different Types Of Employment Contract. Employment Law Contract. 2017. Web. 9 Feb. 2017.
Farrell, Sean and Sarah Butler. Sports Direct Ditches Zero-Hours Jobs And Ups Worker Representation. the Guardian. 2016. Web. 7 Feb. 2017.
GOV, Zero Hours Employment Consultation. Department for business innovation & skills, 2013. Web. 6 Feb. 2017.
Grandhi, Kedar. Mcdonald's Offers UK Staff On Zero-Hours Contract The Option To Move To Fixed Hours. International Business Times UK. 2016. Web. 7 Feb. 2017.
Hall, John. They Won't Be Lovin' It: Mcdonald's Admits 90% Of Employees Are On. The Independent. 2013. Web. 7 Feb. 2017.
Palmer, Nick. Supplementary LFS Data On Zero Hours Contracts- Office For National Statistics. Ons.gov.uk. 2015. Web. 6 Feb. 2017.
Pyper, Doug and Jeanne Delebarre. Zero-Hours Contracts. House Of Commons, 2016. Web. 8 Feb. 2017. Briefing Paper.
Song, Yixin. Zero-Hour Contract. 2015. Web. 7 Feb. 2017.
What Makes McDonald’s. McDonald's. 2015. Web. 7 Feb. 2017.
What Is The Status Of Workers Engaged On Casual Or Zero Hours Contracts? | Faqs | Tools | Xperthr.Co.Uk. Xperthr.co.uk. 2017. Web. 9 Feb. 2017.
Zero Hours Contracts | Acas Advice And Guidance | Acas. Acas.org.uk. 2017. Web. 1 Feb. 2017.